The Indian government has extended the directive for imported coal-based power plants to operate at full capacity until February 28. This directive, initially set to end on December 31, applies to 15 power plants, including those operated by Tata Power Co. Ltd’s Coastal Power Gujarat, Adani Power Mundra Ltd, Essar Power Gujarat, and JSW Ratnagiri, with a combined capacity of around 17 GW.
The extension aims to ensure adequate power supply amid increasing electricity demand. The government anticipates peak power demand to reach 237 GW in January, 234 GW in February, and 240 GW in March, with evening and early morning peaks expected at 215 GW in January, 212 GW in February, and 223 GW in March.
The directive falls under Section 11 of the Electricity Act, allowing the government to instruct power generation companies to operate and maintain stations under extraordinary circumstances. The Ministries of Power and Coal are exploring solutions to reduce costs, including incorporating domestic coal, which is currently challenging due to plant designs and the availability of higher-grade coal.
Industry estimates indicate that the energy charge rate for imported coal-based plants is approximately Rs 4.1-5.6 per unit, while the total tariff for domestic coal-based plants ranges from Rs 2.5 to Rs 5.5 per unit, depending on fuel transportation costs.
